Programme change

Hong Kong tycoon Richard Li’s conglomerate is selling a $1 bln stake in its telecoms unit to fund new ventures in TV and IT services. While PCCW will still control its biggest asset, it will recycle cash into a risky, unproven business. Investors are right to be sceptical.

As part of the deal, PCCW will sell 841 million units, roughly 11.1 percent of the total number of units in issue, to third-party investors at HK$10.15 per unit, representing an 8.4 percent discount to the previous close of the units.

PCCW's holding in HKT Trust and HKT Ltd will be reduced from 63 percent to just under 52 percent.

Shares of PCCW's Hong Kong-listed shares were down 4.1 percent to HK$4.66, while HKT's shares were down 7.4 percent to HK$10.26 by late morning Hong Kong time on Feb. 13.